ARIZONA STATE
SENATE
Fifty-Fourth
Legislature, Second Regular Session
bingo; licenses; taxes
Purpose
An emergency measure that restructures bingo licensing requirements and tax.
Background
The Arizona Department of Revenue (ADOR) is responsible for enforcing statutes that govern bingo games. Anyone who conducts bingo games with prizes and charges players to play bingo must obtain a license from ADOR (A.R.S. §§ 5-502 and 5-504). There are three classes of bingo licenses, each of which has a different tax rate that is based on gross receipts. Any person or group may apply for a class A license, which is generally obtained for recreational or social purposes. A class A licensee is restricted to $15,600 per year in gross receipts and is taxed at 2.5 percent of the licensee's adjusted gross receipts. There is a $5 local governing body fee and a $10 license fee for a class A license. Class B and C licenses are issued to qualified organizations that are dedicated to raising funds for their sponsoring charitable organization. A class B licensee is restricted to $300,000 per year in gross receipts and is taxed at 1.5 percent of the licensee's gross receipts. Additionally, a class B licensee must pay a $25 local governing body fee and a $50 license fee. A class C licensee, whose gross receipts exceed $300,000 per year, is taxed at 2 percent of the licensee's gross receipts and must pay a $50 local governing body fee and a $200 license fee (A.R.S. §§ 5-413 and 5-414). All bingo licenses expire one year from the date of issue and may be renewed for the next one year term (A.R.S. § 5-403).
Qualified organization means a homeowners' association or bona fide charitable, fraternal, religious, social, veterans' organization or volunteer firefighters organization, nonprofit ambulance service or nonprofit national or state organization that has been in existence for two years before applying for a bingo license (A.R.S. § 5-401).
If there is a change in bingo tax collection, there may be a fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Eliminates the three classes of bingo licenses and associated fees and tax.
2. Allows a person or a qualified organization to apply for a bingo license and imposes the following fees and tax:
a) $25 local governing body fee;
b) $50 license fee; and
c) 2 percent of the licensee's gross receipts.
3. Requires, for a bingo license, a qualified organization to have:
a) a manager and supervisor who are members of the licensee;
b) a proceeds coordinator who is an officer or director and a member of the licensee and who is responsible for completing the required financial report; and
c) an assistant who is a member or new member of the licensee.
4. Specifies that there are four reporting periods coinciding with the quarters of a bingo license term.
5. Increases, from five occasions to seven occasions, the maximum number of occasions a bingo licensee is authorized to conduct or operate per week.
6. Repeals statute that outlines notification requirements and fees associated with a change of bingo license class.
7. Makes technical and conforming changes.
8. Becomes
effective on signature of the Governor, if the emergency clause is enacted.
Prepared by Senate
Research
January 17, 2020
MG/AB/gs